The building is approximately 10,800 sq. ft, built in the mid 1980s real address 4020 sul Ross this is just warehouse for sale next to church 4 shipping containers located on the property convey. There are two leases that began on April 1, one with Viva Distributing, LLC (VD), they occupy 10,500 sq. ft of warehouse/office. The other with Angry Angus (AA), the current owner of the building. AA occupies a 300 sq. ft area in the back and the shipping containers. They are both 5 year leases without an option for renewal. Both companies are in their 10th years of occupancy. The lease does not contain any yearly escalations; they are also gross, NNN fees will be deducted for calculating current value. The leases will be reduced by 3% for years 2 through 5, NNN fees will be increased for this term. VD monthly lease is $9000 AA monthly lease is $750 Total monthly lease $9750, $117,000 yearly, $585,000 for 5 years. To obtain the valuation with escalations, we discount it accordingly: Year one $9183 Year two $9458 Year three $9742 Year four $10,034 Year five $10,335 This is 3% escalations, compounded for 5 years. Total of lease payment 585,024 Valuation is based on the beginning lease payment of $9183 Next we reduce this amount of the NNN fees Taxes $6307 Utilities, Water and Electric $4000 (fixed) Insurance $2500 The building has averaged less than $500 maintenance per year for the last 10 years. Total NNN fees $13,307/12= $1109 per month. Adding 3% per year and averaging the 5 years gives us a total of $1194 NNN monthly lease is $7989 per month (=9183-1194) Using a Cap Rate of 8%, we come up with a value of $1,369,542